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Wall Street Banks Face Biggest Texas Loss Yet in Mega Bond Deal

  • Texas agency seeks manager for $3.4 billion storm-bond sale
  • Deal may be state’s biggest in at least two decades: Bloomberg
Texas Gas Service Co. workers attempt to locate an underground gas leak in following a winter storm in Austin, Texas, on Feb. 20, 2021.

Texas Gas Service Co. workers attempt to locate an underground gas leak in following a winter storm in Austin, Texas, on Feb. 20, 2021.

Photographer: Thomas Ryan Allison/Bloomberg
Updated on

Some of Wall Street’s biggest municipal-bond underwriters, ousted from Texas after they limited business with the gun industry, are now facing their biggest loss of business yet as the Lone Star state seeks underwriters for a $3.4 billion storm-bond sale.

The deal could be the biggest municipal-bond sale in Texas in at least two decades, according to data compiled by Bloomberg. Typically large banks handle sales of this magnitude, but three of the biggest in the country, Bank of America Corp., JPMorgan Chase & Co and Goldman Sachs Group Inc., haven’t underwritten a muni sale by the state or its cities since the GOP-led Texas legislature enacted a law in September that blocks governments from working with banks that have curtailed ties to the gun industry.